Color sma based on highest and lowest value of the day

I had to change the title of your question to one that actually describes the context of your question.

What you have requested here creates a third condition (color) which you did not mention. Allow me to explain. If sma1 is higher than previous AND sma1 is higher than its highest value for the day, color blue. What if sma1 is higher than previous but NOT higher than its highest value? When you include the red color condition, that right there is your third condition.

So I selected the color gray for your third condition. While sma1 is neither higher than its daily highest, nor lower then it daily lowest, it will be colored gray. Attached screenshot shows the result.

Here is the code:

plot sma1 = Average(close, 2);
def newDay = GetDay() <> GetDay()[1];
rec dailyHighest = if newDay then sma1 else if sma1 > dailyHighest[1] then sma1 else dailyHighest[1];
rec dailyLowest = if newDay then sma1 else if sma1 < dailyLowest[1] then sma1 else dailyLowest[1]; def colorBlue = sma1 > sma1[1] and sma1 > dailyHighest[1];
def colorRed = sma1 < sma1[1] and sma1 < dailyLowest[1];
sma1.AssignValueColor(if colorBlue then Color.BLUE else if colorRed then Color.RED else Color.GRAY);